Adjusting entries affect at least one balance sheet account and at least one income statement account. For the entries below, identify the account to be debited and the account to be credited. Indicate which of the accounts is the income statement account and which is the balance sheet account. Assume the company records prepayments of expenses in asset accounts, and cash receipts of unearned revenues in liability accounts. Entry to record service revenues performed but not yet billed (nor recorded). Entry to record janitorial expense incurred but not yet paid. Entry to record rent expense incurred but not yet paid. Entry to record interest expense incurred but not yet paid. Entry to record expiration of prepaid rent.
Answers
Answer:
Entry to record service revenues performed but not yet billed (nor recorded).
Dr Accounts receivable (asset, balance sheet)
Cr Service revenue (revenue, income statement)
Entry to record janitorial expense incurred but not yet paid.
Dr Janitorial expense (expenses, income statement)
Cr Janitorial expenses payable (liability, balance sheet)
Entry to record rent expense incurred but not yet paid.
Dr Rent expense (expenses, income statement)
Cr Rent expenses payable (liability, balance sheet)
Entry to record interest expense incurred but not yet paid.
Dr interest expense (expenses, income statement)
Cr Interest expenses payable (liability, balance sheet)
Entry to record expiration of prepaid rent.
Dr Rent expense (expenses, income statement)
Cr Prepaid rent (asset, balance sheet)
Answer:
the numbering
Explanation:
EDGU 2021
Related Questions
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 5%. The Federal Reserve buys a government bond worth $200,000 from Lorenzo, a client of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank.Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans). Assets LiabilitiesReserves $200,000 Deposits $200,000 Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%.Hint: If the change is negative, be sure to enter the value as negative number.Amount Deposited Change in Excess Reserves Change in Required Reserves(Dollars) (Dollars) (Dollars)200,000 Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately uses the funds to write a check to Gilberto. Gilberto deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Lorenzo, who writes a check to Neha, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Teresa as well.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.Increase in Deposits Increase in Required Reserves Increase in Loans(Dollars) (Dollars) (Dollars)First Main Street Bank Second Republic Bank Third Fidelity Bank Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $200,000 injection into the money supply results in an overall increase of in demand deposits.
Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2018 are as follows: Units Per unit price Total Balance, 1/1/18 200 $5.00 $1,000 Purchase, 1/15/18 100 5.30 530 Purchase, 1/28/18 100 5.50 550 An end of the month (1/31/18) inventory showed that 160 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month
Sterling Company paid $1,200 for 3 months of rent on April 1 of the current year. On April 30, Sterling Company made an adjusting entry to account for the rent that expired during the month of April. The adjusting entry contained a debit to Rent Expense in the amount of $ Blank 1 of 3 and a credit to Prepaid Rent in the amount of $ Blank 2 of 3. The remaining balance in the Prepaid Rent account after the adjustment was
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 12% and 16%, respectively. The beta of A is 0.7, while that of B is 1.4. The T-bill rate is currently 5%, whereas the expected rate of return of the S&P 500 index is 13%. The standard deviation of portfolio A is 12% annually, that of B is 31%, and that of the S&P 500 index is 18%. a. Calculate the alphas for the two portfolios. (Round your answers to 1 decimal place.)
Answers
Answer:
The answer is $41.2
Explanation:
This will be solved by Dividend Discount Model which is one of the ways of valuing the price of shareholders' equity.
Here, the future value of dividend payment are discounted using the cost of equity.
Ke = D1/Po + g
Where Ke is the cost of equity
D1 is future dividend payment.
Po is the current share price or stock price
g is the growth rate.
To find the current price of stock price, we need to re write the equation;
Po = D1 ÷ (Ke - g)
D1 = Do x 1.03
= $2 x 1.03
=2.06
Ke = 8% or 0.08
g = 3% or 0.03
So we have;
2.06 ÷ (0.08 -0.03)
$2.06 ÷ 0.05
$41.2
Answers
Answer: D) cyclical
Explanation:
Cyclical Demand is difficult to predict because it goes according to the business cycle and hence is affected on a Macro Economic scale by events at a National or International level.
This means that something could be in demand today but the demand could fall or rise sharply based on the stage of the business cycle the economy is in.
Answers
Answer:
The company’s cash flows from investing activities is $221,100
Explanation:
Cash flow from investing activities:
It records that transactions which is related to the purchase and sale of long term assets. The purchase of fixed assets has outflow of cash so, it is deducted whereas the sale of fixed assets has inflow of cash so, it is added.
The cash flow from investing activities is shown below:
Add : Sale of equipment (Book value - loss) = ($65,300 - $14,000) = $51,300
Less : Purchase of new truck = - $89,000
Add: Sale of land = $198,000
Add: Sale of long term investment = $60,800
So, the cash flow from operating activities :
= $51,300 - $89,000 + $198,000 + $60,800
= $221,100
The other cost is not related to the investing activities. Therefore, it is not considered in the computation part.
Hence, the company’s cash flows from investing activities is $221,100
Answers
Answer:
EPS = $ 2.00
Explanation:
Earning per share: EBIT/outstanding shares
unlevered firm EPS:
oustanding shares: 10,000
Levered firm EPS:
(EBIT - interest)/outstanding shares
where:
Interest_ 50,000 x 5% = 5,000
Shares repurchase: 50,000 / 20 = 2,500
Outstanding shares: 10,000 - 2,500 = 7,500
EBIT/10,000 = (EBIT-5,000)/7,500
(0.75)EBIT = EBIT - 5,000
5,000 / (1-0.75) = EBIT
EBIT = 20,000
EPS: 20,000 / 10,000 = 2.00
Answers
Answer:
Option D is correct one.
Saving plus net taxes equals planned investment plus government purchases.
Explanation:
Total spending equals total output if and only if leakages are equal to injections—that is, only if the sum of saving and net taxes is equal to the sum of planned investment spending and government purchases.
Answer:
D. only when the sum of saving and investment equals the sum of net taxes and government expenditures
Explanation:
Based on the scenario being said in the question where it is asked that which total spending will equal total, that will happen only when the sum of the savings and investment.
Total spending can only equals total output if and only if leakages will be equal to injections, in other words, only if the sum of saving and net taxes (addition of Saving and Nets) is equal to the sum of planned investment spending and government purchases (addition of planned investment and government purchases.)
Answers
Answer:
a. At what price will the bond sell?
- $102.71
b. What will the yield to maturity on the bond be?
- 0.0952 or 9.52%
c. If the expectations theory of the yield curve is correct, what is the market expectation of the price that the bond will sell for next year?
- $101.37
d. Recalculate your answer to (c) if you believe in the liquidity preference theory and you believe that the liquidity premium is 1.5%.
- $102.78
Explanation:
current YTM for zero coupon bonds = 8.5% for 1 year bonds and 9.5% on 2 year bonds
The Treasury plans to issue a 2-year maturity coupon bond, paying coupons once per year with a coupon rate of 11%. The face value of the bond is $100.
bond price = PV of maturity value + PV coupons
- $100 / (1 + 9.5%)² = $83.40
- [$11 / (1 + 8.5%)] + [$11 / (1 + 9.5%)²] = $10.14 + $9.17 = $19.31
- issue price = $83.40 + $19.40 = $102.71
YTM = [C + (FV - PV)/n] / [(FV + PV)/2] = [11 + (100 - 102.71)/2] / [(100 + 102.71)/2] = 0.0952 or 9.52%
next year's price:
- $100 / (1 + 9.5%) = $91.32
- $11 / (1 + 9.5%) = $10.05
- total = 101.37
next year's price if you believe in liquidity preference theory (1.5%):
- $100 / (1 + 9.5% - 1.5%) = $92.59
- $11 / (1 + 9.5% - 1.5%) = $10.19
- total = $102.78